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How to Buy a Canadian Business

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How to Buy a Canadian Business – Canada is a country that is blessed with milk and honey and it is ranked among the top ten strongest economies of the world and with a rising GDP, the country is seen to be wealthy and offers a lot of great opportunities to entrepreneurs. The country practices a mixed economy meaning that individuals can harness resources in the country and engage in production and distribution so this is a great place if you want to establish or buy a business.

Even in the hit of the pandemic when other countries of the world were having a hard time with their economies, Canada’s economy was growing and getting stronger as the country’s GDP increased greatly from 2020 to 2021.

Canada offers you a lot of opportunities regardless of the reason you are moving to Canada as the country offers one of the best quality of life, security, better standard of living and many more and this is why it has been seen as the top destination for a lot of immigrants in recent years.

If you have an entrepreneurship dream of either establishing a business or you want to buy a Canadian business, there is no reason to doubt the success of the business as Canada is a commercialized country where any business can thrive and succeed.

We are going to be showing you how you can actually buy a Canadian business and also how you can establish a business in Canada. Starting up a business or buying one in Canada is very easy as it is even seen as one of the easiest in the world.


READ ALSO: 5 Important Reasons to Secure a Job in Canada Before Moving

Having or wanting to buy a business in Canada will certainly increase your chances of getting a Canadian visa much faster as it will be seen that you are ready to contribute to the growth and development of the country and in a bid to help your business to be successful, the Canadian government offers grants, entrepreneurial supports and other financial assistance and so you will certainly enjoy owning a business in Canada.

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Without further ado, let’s look at how you can actually but a Canadian business.

How to buy a Canadian business

Buying an existing business in Canada is quite different from starting up a new one and so the processes are different and the option you choose will determine how you will account for the business you have acquired; this will determine how much you will pay as income tax as the information is needed by the Canadian government.

You will have to be serious about your decision and in some cases, you will be expected to buy the business at a go and start-up operation immediately. Sometimes, there can be a sale agreement that set out prices of each asset and the value of the inventory. The prices of the individual assets can be used to determine the Capital Cost Allowance (depreciation) as this will give you an estimate of what the buying the business will cost.

If you want to start the process of buying a business in Canada, you will definitely need to present a business plan and also show the Canadian government how your business will help create jobs in Canada. This will make the Canadian government know that you are serious and focused on contributing to the growth and development of the country.

By buying a business as a foreign national in Canada, you will be classified as a business immigrant or foreign investor entrepreneur. If you want to move to Canada, you can buy the existing business you want to buy and then apply for a temporary work visa under the Federal Temporary Foreign Worker Program (TFWP) as a management level employee.

So if you have immigrated to Canada as a temporary worker, you can then apply for permanent residency in Canada after some months and you can do this through the Express Entry System under one of the Federal Immigration Stream called the Federal Skilled Worker Program. You can also go through the Provincial Nomination Program.

What Are The Requirements To Become A Business Owner In Canada?

Some of the requirements to meet to become a business owner in Canada are:

  • You must have assets to purchase in Canada
  • You must be a foreign investor with verifiable management experience
  • You must have language proficiency in either English or French

What is the 3-Step Process to Buy a Canadian Business?

  • You must identify a Canadian business you want to purchase as a foreign investor
  • You must submit a Labour Market Impact Assessment (LMIA) along with a good business plan.
  • You must apply for a temporary work permit that will last for 12-24months and that is after you have been issued a positive LMIA.

FINAL NOTE

Anyone can buy a business in Canada as you just have to prove that you are able to manage the business and fund the business too. Canada loves entrepreneurs as they are seen as game changers in every economy and are pivotal in the economic growth and development of a country.

In buying a business, your business plan must show how you intend to create employment opportunities in Canada and how passionate you are about growing the business.

You will have to be serious about buying the business as this will help fast track your immigration process into Canada and if the period of processing is about 12-36 months, yours might be reduced because you are a potential foreign investor.

You will also need to determine the type of business you want to buy and where would be the best place to buy it. Canada has over 13 provinces and territories and choosing the right business and place for the business can influence the success of the business.

Canada is the best place to achieve your dream of being an entrepreneur and you can start the process now.  Buy a Canadian business and move to Canada sooner.

READ ALSO: 6 Things You Should Know About Working in Canada

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